The Five Levels of Small Business Growth

The growth capacity and size of different small businesses vary at a wide range. This is based on the structure of the organization, the styles of management applied, as well as the independence of action in business. Having a defined framework allows the evaluation of current and proposed regulations and policies of the government. It also assists consultants and accountants in the diagnosis of problems related to small businesses. Through this, matching solutions can be acquired. To achieve a relevant framework for a small and growing business, a combination of empirical research, literature, and experience is used. The result of this endeavor created the five stages of developing a small business which are outlined below.

In the first stage, which is Existence, the major challenges are getting customers and providing the necessary products and services accordingly. As the structure of the corporation is simple, the business owner executes all the tasks and offers direct supervision to the subordinates to ensure that everything is done well. Formal planning or the use of systems is minimum or even non-existent. Here, the owner's major focus is to keep the strategy of the company alive. They become the key supplier of capital, direction, and energy to stabilize the business. Know about Small Business Growth Partners here!

At the second level of growth, which is referred to as the stage of Survival, the business is considered as a business entity that is workable. It has attained a good number of customers who are satisfied with the services and products provided to them. Therefore, the focus here shifts from merely existing to handling the expenses and revenues. As the organization is still in its early stages, the number of employees is not as much, thus working under the supervision of a foreman or a sales manager. To read more on the importance of business growth, check out https://www.youtube.com/watch?v=aJ7rrHYmFiQ&list=PLF3C501AC536C602B.

In the third level which is the success stage, things get a little more complicated. The owner gets to decide whether he should use the profits to expand the business or rather provide a basis for other activities, thus keeping the company profitable and stable. The Take-Off level is the fourth stage, whereby the main issue is how to attain rapid growth and which finances will be used to attain this. Here, there are two major mistakes that are made and should be avoided. Either, the business person could try to grow at a very fast rate and eventually run out of capital, while another one could fail to organize the company well enough resulting to its downfall. The fifth level is Resource Maturity, where the company has the staff and finances to get involved in strategic and operational planning. Contact Small Business Growth Partners to know more!